ABB Division Fact Sheets - ABB Groupnew.abb.com/docs/default-source/investor-center... · ABB Division Fact Sheets. October 04, 2016 ©ABB. Slide 2 ... Distribution. Renewable gen

CAPITA L MARKETS DAY, OCTOBER 4, 2016

ABB Division Fact Sheets

October 04, 2016©ABB

Slide 2

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1Revenues by new divisional structure effective January 1, 2017; 2Sales of products, systems, or services where software is part of what is delivered or requires real-time integration with customers’ systems; 3Adjusted for the impact of divested businesses; 4Constant currency

ABB financial summary

TransmissionDistributionRenewable gen.Conventional gen.Mining & metalO & G, ChemicalOther IndustryBuildings

UtilitiesIndustryTransport & Infr.

Revenues by division 20151

% of total revenuesRevenues by region 2015

% of total revenues

Revenues by end market 2015% of total revenues, estimated

Employees by region 2015% of total workforce

Service revenue percentage% of total revenues3

Capital allocation 2011 – 15 US$ billions and % of total deployed

Revenues by product type 2015% of total revenues, estimated

Dividend per share CHF

Operational EPS growth4

23%

27%

19%31%

PGRM

EPIA

37% 33%

30%Mature marketsEmerging markets

AMEAEuropeAmericas

32%45%

23%AMEAEuropeAmericas

15% 15%16%

17%

2012 2013 2014 2015

22%35%

34%

9%

DividendShare buybackCapex

MarineRailOther Transport & Infrastructure

59%24%

17%

Digitally enabled2

Non-digitally enabledProductsSystemsService and software

0.51 0.60 0.65 0.68 0.70 0.72 0.74

2009 2010 2011 2012 2013 2014 2015

1.281.35

2014 2015

Acquisitions

~$25 bn

51%49%

32

41

27

Revenues and Op. EBITA margin % US$ bn and %

39.3 41.8 39.835.5

12.1% 12.3%11.2% 11.8%

2012 2013 2014 2015

FCF and percentage of net income US$ bn and %

2.6 2.6 2.62.9 3.0

82% 94% 94%110%

156%

2011 2012 2013 2014 2015

+5%

55%45%


Slide 3

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1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes

Electrification Products1

Partner of choice for electrification of all consumption points

2015

Orders Revenues

Orders and revenues$ bn

10.5 10.2

Op. EBITA$ bn, margin %

EmployeesThousand

Current structure New structurepro-forma1,4

20152014

10.9

9.810.6

9.5

Main competitors

Market ~$140 bn market2 in 2015

Position of strength Complete portfolio for electrification of “the site”Strong distributor relationshipsGeographically balanced production and R&D footprintStrong growth segments renewables, data centersInnovative products and solutionsIntelligent solutions for smarter buildings

OfferingBroadest global portfolio of low- and medium-voltage products and solutions for intelligent protection and connectionPre-engineered, packaged solutions and services tailored to customers’ needs

1.71.6

1.3

16.4%16.4%

Key figures

1.514.7%

42.5 41.6 43.6

0%3

0%3


Slide 4

—Electrification Products1

Business breakdown and key end-market growth trends

Buildings:Up globally, shift to smart buildings

Industry:Solid growth from digitalization as well as safety

Renewables:Double digit growth

Customers Geography

Emerging markets:Slowdown in China; uncertainty in TurkeyModerate growth in Saudi Arabia & RussiaStrong growth India Mature markets: Pockets of growth USA & CanadaGrowth slowdown in Germany, Italy & Finland; uncertainty in UK

38

35

27

4654

AMEAEuropeAmericas

Emerging marketsMature markets


1All comments and numbers pertain to the new divisional structure as of January 2017

18

3349

40

712

12

18

Channels

Digitalization:Connectivity and communication, digital models and configurators

Service / software: Condition monitoring and diagnostics, cloud connection and cyber security, collect, provide and process data

DistributorsInternalUtilitiesEPCOEMPanel builders

11

DistributionRenewable gen.Mining & MetalO&G, ChemicalOther IndustryBuildingsOther Transport & Infrastructure

Approximation, % Approximation, % Approximation, %


Slide 5

—Electrification Products1

Partner of choice for electrification of all consumption points

Electrification #2

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Electrical distribution

LV/MV switchgearDistribution boardsCircuit breakersSolar inverters, UPS

Building solutions

EV charging

Wiring accessories

Intelligent building / smart home products

Installation

Enclosures

DIN-rail products

Wire and cable mgmt.

Automation/Control

MV grid automation

Motor control centers

Intelligent breakers

MV #1 EV charging #1

1Reflects portfolio changes as of January 2017


Slide 6

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1New divisional structure as of January 2017; 2Unconsolidated; 3Comparable growth; 4 Portfolio changes

Robotics and Motion1

Partner of choice for robotics and intelligent motion solutions

2015

Orders

10.9 8.4

Revenues

Current structure Discrete Automation & Motion

New structurepro-forma1,4

10.6

9.2

10.1

9.1

1.6

1.3

15.7%

13.9%

Key figures

1.3

15.7%

31.7 30.3 27.9

Main competitors

Market ~$100 bn in 20152

Position of strength

Technology leader in fast-growing robotics market

Broadest robotics portfolio and large installed base

Largest motion player with unmatched global reach

At the cutting edge of power electronics and quality, renewables, and electric transportation

Offering

Robotics and intelligent motion solutions Orders and revenues$ bn


EmployeesThousand

20152014

8.3

-5%3

-2%3


Slide 7

—Robotics and Motion1


Automotive: growing specifically in emerging markets like Asia

3C & semicon: robotization of manufacturing processes

Food & Beverage: population & income growth; lifestyle changes

Customers Geography

Emerging markets: China and India driving global growth

Mature markets: US growingEurope mixed; impact of Brexit still unknown

30

36

3436

64

AMEAEuropeAmericas



Transport & Infr.

Renewable gen.Conventional gen.O&G, ChemicalAutomotiveMining & Metal

RailBuildingsMarine

UtilitiesIndustry

F&BOther Industry

12

68

20

73

12

15

Offering

Digitalization: will continue gaining relevance and will drive customer expectations

Service / software: growing reliance on data management and statistical productivity

ProductsSystemsService and software



Slide 8

—Robotics and Motion1

Partner of choice for robotics and intelligent motion solutions

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Robotics

Industrial robots, software and IoTSP connected servicesRobotic applications and systems for diverse industries

#2

Drives

LV AC drives up to 5600 kWMV drives to 100 MWWind convertersDigital services and software toolsPropulsion converters

#1

Motors & Generators

LV motors to 1’200 kWHV motors to 80 MWPower generators to 80 MWMechanical power transmission

#1

Com

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1Reflects portfolio changes as of January 2017


Slide 9

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Main competitors

1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes

Industrial Automation1

Partner of choice for industrial automation


Employees

Key figures

Orders Revenues

Market ~$120 bn market in 20152


Integrated control product, system and service offering

Advanced process control & optimization software and know-how

Integrated power and automation solutions

Largest installed base, advanced services

Deep domain and process expertise

OfferingControl systems, software, measurement & analytics Industry-specific power & automation solutions, products (e.g. electric ship propulsion) and services

Orders and revenues$ bn 10.9

7.5 7.4

2015

Current structureProcess Automation

New structurepro-forma1,4

20152014

1.00.9

11.9%

11.8%

12.0%

25.8 24.8 25.2

9.2

7.38.6

7.2

0.9

-9%3

-5%3


Slide 10

—Industrial Automation1


Chemicals: positive fundamentals

F&B, pharma & discrete industries:population growth, increasing disposable income

Cruise ships: strong demand from Europe & Asia

Emerging markets: penetration of basic automation still rising, aging installed base provides upgrade opportunities

Mature markets: leveraging digital to achieve next level of productivity, energy efficiency and safety

43

34

23

505013

59

28


Conventional generationO&G, ChemicalMining & MetalsOther IndustryMarineOther Transport & Infrastructure


AMEAEuropeAmericas


Digitalization: growth opportunity building on largest installed base in power generation and process industryServices and software: supporting customers remotely with advanced services and optimization


28

35 37

Customers GeographyOfferingApproximation, % Approximation, % Approximation, %


Slide 11

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1Leader in Force Measurement

Industrial AutomationPartner of choice for industrial automation

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Industry-specific solutions & servicesIntegrated electrification & automation solutionsSystems and advanced services

Propulsion

Electric propulsion systems for shipsLarge turbochargers >500kW

Measurement & analyticsPressure, temperature, flow, level, force measurementAnalyzers

Control systems & softwareProcess and discrete control (DCS, PLC)Adv. process control & manufacturing execution systems

Process industries #1-5Marine #1

Measurement &analytics top 3-51

DCS #1; PLC top 10 APC/MES software #1/2

Electric marine propulsion #1Turbocharging #1


Slide 12

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Main competitors

1Consolidated (unconsolidated ~$140 bn market); 2Comparable growth;

Power GridsPartner of choice for a stronger, smarter and greener grid

12.8 12.212.5 11.6

38.1 37.2

Orders and revenues$ bn


Employees

8%2

2%2

Market ~$110 bn market in 20151


Market and technology leader

Unrivalled application know-how

Truly global player with largest installed base

Leading software and automation solutions

Industry leading margins

Orders Revenues

Key figures

2014 2015

OfferingBroadest offering of products systems, services and software for power transmission and distribution

0.6 0.94.7%

7.5%


Slide 13

—Power GridsBusiness breakdown and trends

Transmission & distribution: increasing complexity, more take-out and feed-in points, interconnections, aging infrastructure, physical cyber securityIntegrating renewables: long distance transmission, storage, bi-directional flow, power stability, microgridsConnecting consumers: rail electrification, data centers, EVs, industry

Emerging markets: Grid build out, renewable integration, interconnections, electrification of society

Mature markets: Renewable integration, interconnections, aging infrastructure, power quality, security of supply, electrification of transport

38 32

30

4753

AMEAEuropeAmericas



TransmissionDistributionRenewable generationConventional generationIndustry

1Percent of division revenue 2015;

RailOther Transport & Infrastructure

78

148

52

34

14

Digital equipment: real time supervision, higher reliability, maintenance optimization

Digitally enhanced systems: faster installation, more configurable power quality, higher penetration of renewables, managing less predictable supply & demand

Software & operations: more real-time control, smart asset mgmt., planning optimization


Customers1 Geography1Offering1



Slide 14

—Power GridsPartner of choice for a stronger, smarter and greener grid

Products & components Consultancy, services & softwareSystem & automation

#1 #1Automation HVDC

Distribution transformersPower transformersHV gas / air insulated switchgear Power quality components

Substations Grid automationFACTSHVDCMicrogrids

Consulting, planning servicesNetwork control, operation servicesAsset & workforce mgmt.Asset performance mgmt.Maintenance services

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#1

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Slide 15

—Contact us

ABB LtdInvestor RelationsP.O. Box 8131CH-8050 ZürichPhone: +41 (0) 43 317 71 11E-mail: [email protected]/investorrelations

This presentation contains non-GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Financial Information” under “Financial results & presentations” – “Quarterly results & annual reports” on our website at www.abb.com/investorrelations


Slide 16

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Documents

ABB Division Fact Sheets - ABB Groupnew.abb.com/docs/default-source/investor-center... · ABB Division Fact Sheets. October 04, 2016 ©ABB. Slide 2 ... Distribution. Renewable gen